This
is an appeal to the Utah State Tax Commission for reconsideration of a
Commission decision denying a request for waiver of a penalty assessment on
Petitioner's XXXXX third quarter sales tax return.Pursuant to Utah Code Ann. §63-46b-5-(l)(b) no hearing was
held.A review of Petitioner's file
served as the evidentiary basis for this decision.

Petitioner,
XXXXX, failed to file a timely third quarter XXXXX sales tax return.During a routine Sales and Use tax audit, it
was determined that Petitioner had a XXXXX within Utah.An assessment was made, and subsequently
paid XXXXX.While the audit was being
conducted, the auditor was registering Petitioner for Sales and Use tax
purposes.Petitioner asserts that, due
to a delay in establishing a tax account, Petitioner did not receive
notification of the establishment of the account and was therefore unaware of
any filing requirements.Petitioner
points out that, originally there were two numbers assigned to Petitioner's
account, and that after resolving the duplicate registration problem they
promptly filed and paid the third quarter XXXXX taxes on XXXXX.

FINDINGS

Utah
Code Ann. §59-1-401(1)(b) stipulates that the penalty of the greater of $$$$$
or 10% of the tax due shall be assessed for failure to file a timely
return.Utah Code Ann. §59-1-401(7)
authorizes the Commission to waive such penalties upon a showing of reasonable
cause.Because Petitioners were not
notified of the establishment of their account, or of filing requirements, a
waiver of the penalty assessment is in order.

DECISION AND ORDER

Based
on the foregoing facts, it is the Decision and Order of the Commission that the
request for waiver of the penalty assessment be granted.